The Knoxville, Tenn.-based chain of 383 stores in 21 states, owned by Manhattan hedge fund Prentice
Capital Management LP, pinned the blame on a number of factors
including high gas prices and underperforming stores. Goody's said it
is seeking $210 million in debtor-in-possession financing, which would
allow it to continue to operate while under the bankruptcy process.
The filing continues Prentice Capital's
ill luck with retailers.
The Deal's Jamie Mason writes:
[The bankruptcy] has an all-too-familiar ring for Prentice, which bought Levitz Furniture Corp. in December 2005 after the retailer exited from its second bankruptcy and renamed it PLVTZ. But that didn't stop the retailer from falling into bankruptcy a third time, on Nov. 8, costing Prentice its $93 million investment. PLVTZ was eventually sold to liquidators.
Prentice invested $65 million in Goody's at the beginning of the year. -
George White
See Reuters story in Goody's filing
See story about Goody's from TheDeal.com
See Dealwatch on PE-related bankruptcies
Southern apparel chain Goody's Family Clothing Inc. became the latest private equity-controlled retailer to tip into Chapter 11 bankruptcy. 
